Salvatore Ferragamo has acquired a 100% stake in four joint-venture companies created in partnership with Trinity Ltd (Fung Group) which operate Ferragamo distribution in South Korea and South-East Asia, where the fashion label currently has 70 monobrand stores.
Ferragamo has stated in a press release it has bought the companies’ 20% share still owned by Trinity, via Trinity Luxury Brands Holdings Ltd and Ferrinch (L) Ltd. The value of the transaction was not disclosed.
The deal impacts Ferragamo Korea Ltd, Ferragamo (Malaysia) Sdn. Bhd., Ferragamo (Singapore) Pte Ltd and Ferragamo (Thailand) Ltd, and is part of an agreement signed in 2012, which includes a purchasing option allowing Salvatore Ferragamo to take full control of the joint-venture companies.
At the time, Ferragamo had already increased its stake in the four companies, which amounted to 80%. The economic slow-down in Asia has undoubtedly urged Hong Kong retail giant Fung Group to sell the remaining stock.
In the last few years, the Asia-Pacific region has become Salvatore Ferragamo’s main market, accounting for 35.5% of its global revenue. As of 30th September 2016, the label’s sales in the region amounted to €360 million, equivalent to a 0.3% decrease compared to the first nine months of the previous fiscal year.